Hyperliquid HLP incurred a loss of $1.2 million from taking over Fartcoin long positions. The APR over the past month is 0%.

Chain news from CoinDesk. On X, on-chain analyst 0xMacroGuy said that, due to taking over a large Fartcoin long position from a suspected malicious actor (now closed), Hyperliquid HLP lost about $1.2 million within 24 hours, which is equivalent to a drawdown of about 0.35%. According to 0xMacroGuy’s explanation, the attacker’s behavior pattern is as follows: first, establish a large leveraged position on a relatively low-liquidity asset; intentionally push the position into a losing state, deliberately burning their own funds; once the position is liquidated, ADL is triggered, and HLP is forced to absorb this loss, thereby inheriting this toxic position and the resulting bad debts; the end result is that the attacker loses capital, but HLP suffers a larger loss. The real-time page for Hyperliquid HLP shows that this Vault’s TVL is temporarily reported at $420 million, and the APR over the past month was 0%.